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IMF Executive Board Concludes 2013 Article IV Consultation with Algeria
ALGIERS – On January 23, 2014, the Executive Board of the International Monetary Fund (IMF) concluded the Article IV consultation with Algeria without a meeting.2
Economic performance in 2013 has been satisfactory. Inflation, which reached 8.9 percent last year, has decelerated significantly in 2013 thanks to fiscal consolidation and prudent monetary policy. Real gross domestic product (GDP) growth is expected to slow to 2.7 percent in 2013 from 3.3 percent in 2012, reflecting a continued decline in hydrocarbon sector output and lower public spending, somewhat offset by the strong growth of private demand and investment by state-owned enterprises. However, Algeria’s external position, though still very strong, has started to weaken. The current account surplus is expected to narrow to 1.1 percent of GDP in 2013, as robust domestic hydrocarbon consumption, together with declining prices, weighs on hydrocarbon exports and import growth remains sizeable. Risks are tilted to the downside: Algeria is vulnerable to a prolonged decline in oil prices, a worsening of the global environment, further pressure on the hydrocarbon rent, and an intensification of regional tensions. Outward spillovers are likely to be limited. Algeria faces a number of challenges. Despite stabilization in 2013, new inflationary pressures may arise following the recent surge in credit and a new increase in public sector wages. Fiscal and external vulnerabilities to developments in the hydrocarbon sector are worsening, as the domestic consumption drag on export volumes is compounding the longstanding risk related to lower oil prices. In addition, notwithstanding the ongoing consolidation, fiscal policy is not on a sustainable path. It is de facto pro-cyclical, and the non-hydrocarbon primary deficit is well above its long-term sustainable level, implying negative net public savings in the long run. Finally, shortcomings in competitiveness and productivity are weighing on economic growth, which remains below its potential and below the level required to significantly reduce unemployment, especially for youth and women. Although stable, the financial sector is underdeveloped, constraining access to financing, in particular for small- and medium-sized enterprises.
Executive Board Assessment
Executive Directors commended Algeria’s economic performance, notably the decline in inflation, unemployment and inequality. Directors noted, however, that strong credit growth and another public sector wage increase call for continued caution over price stability. They also observed a worsening in the economy’s vulnerability to developments in the hydrocarbon sector, as declining hydrocarbon production and surging domestic consumption are squeezing export volumes, compounding the longstanding risk of lower oil prices. Finally, they noted that unemployment remained high among youth and women. Against this background, Directors encouraged the authorities to take measures to consolidate macroeconomic and financial stability, ensure long-term fiscal sustainability, and promote strong private sector-led non-hydrocarbon growth and robust job creation.
Directors welcomed the decline in inflation brought about by monetary tightening and fiscal consolidation. They cautioned, however, that the recent surge in credit to the economy, together with the planned increase in current spending in 2014, could revive inflationary pressures, and urged the Banque d’Algérie to stand ready to increase liquidity absorption and raise interest rates if needed. Avoiding new increases in current spending, and financing the budget deficit by issuing debt rather than by drawings from the oil fund, will also be important.
Directors emphasized that the fiscal consolidation initiated in 2013 should continue in order to ensure fiscal sustainability. They recommended containing the wage bill; gradually phasing out subsidies while establishing a targeted cash-transfer system to protect the poor; stabilizing transfers to public entities in real terms; and reducing tax exemptions. To protect economic growth, Directors agreed that it will be important to preserve capital spending and enhance its efficiency and effectiveness.
Directors recommended that Algeria adopt a full-fledged fiscal rule to better manage hydrocarbon revenue volatility and attain fiscal sustainability. A fiscal rule using a backward-looking average oil price and setting a limit on the structural primary balance consistent with long-run fiscal sustainability would improve the management of hydrocarbon revenue. Further, the oil fund could be transformed into a sovereign wealth fund, and annual ceilings on drawings established to preserve financial savings. To improve public financial management, Directors recommended increasing the transparency of hydrocarbon revenue collection and developing an integrated financial management information system.
Directors noted that preserving fiscal and external sustainability would require increasing hydrocarbon production and extending the time horizon of reserves. They recommended improving the business environment, attracting Foreign Direct Investment (FDI) in the hydrocarbon sector, and swiftly implementing the national oil company’s investment plans. Phasing out implicit subsidies would help contain domestic energy consumption and support exports.
Directors encouraged the authorities to continue targeting the equilibrium real effective exchange rate to protect the competitiveness of non-hydrocarbon exports. They saw the premium in the illegal parallel exchange market as detrimental to growth and urged the authorities to forcefully tackle it. Furthermore, they recommended increasing the indicative foreign exchange ceilings for travelers to more realistic levels.
Directors welcomed the stability of the financial sector. To support its development, they recommended fostering competition in the banking sector, speeding up the development of credit bureaus, revisiting the guarantee mechanisms, and strengthening collateral and insolvency regimes. Directors also called for the ban on consumer lending to be lifted, and more space provided for mortgage finance. To develop capital markets, they advised issuing more sovereign debt and listing well-performing state-owned enterprises on the stock exchange, while removing disincentives to private sector debt and equity issuance. Finally, Directors urged the authorities to take immediate steps to address deficiencies in the Anti-Money Laundering/Combating the Financing of Terrorism framework.
Directors underscored the need for wide-ranging structural reforms to accelerate economic growth and job creation. They noted in particular the importance of improving the business environment, enhancing cost competitiveness, and relaxing the restrictive FDI regime. They called for deeper trade integration through WTO accession, trade facilitation, and export promotion. Directors also called for reforms to increase labor market flexibility and ensure that job seekers are equipped with the right skills.
Social media critic Martins Vincent Otse, popularly known as VeryDarkMan (VDM), has released what he described as his first piece of evidence after the Nigeria Police Force challenged him to substantiate his allegations that some police officers allegedly collaborate with kidnappers.
VDM released a video on his Instagram handle on Thursday, August 27, 2026, shortly after the police invited him to provide evidence supporting the claims he made at the 66th Annual General Conference of the Nigerian Bar Association (NBA) in Port Harcourt.
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The activist captioned the video: “My evidence number 1.”
Recalled that VDM, who was a panellist at the NBA conference on Tuesday, had alleged that some police officers manning checkpoints along major highways provide kidnappers and bandits with information about travellers.
According to him, the officers allegedly relay details about the identities and movements of travellers to criminal groups, thereby facilitating abductions for ransom.
The allegation triggered a response from the Nigeria Police Force, which denied the claim and challenged VDM to substantiate his allegations.
The police invitation came as the force sought evidence to support the serious claims made by the social media critic.
In response, VDM released the video, describing it as his “evidence number 1”, signalling that he may provide further material to support his allegations.
The development has continued to attract attention, with the controversy placing renewed focus on allegations of possible collaboration between security personnel and criminal groups involved in kidnapping and banditry.
A former Permanent Secretary of the Federal Civil Service Commission, Goke Adeboroye, has questioned how an alleged fake presidential agency was able to gain access to government facilities, budgetary provisions and office space without being detected.
Adeboroye spoke on Channels Television’s Inside Sources following the discovery of the alleged Presidential Foreign Intervention Promotion Council by the Independent Corrupt Practices and Other Related Offences Commission.
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The ICPC had said the purported agency had no legal basis and operated with forged appointment letters and other official documents.
The commission also said its alleged Director-General, Adeniyi Matthew, was never appointed by the Federal Government.
The anti-corruption agency further disclosed that its investigation into the PFIPC led to the discovery of the National Brands Development and Made in Nigeria Special Project Office, which it alleged was operating within the Office of the Secretary to the Government of the Federation without proper authorisation.
Reacting to the development, Adeboroye described the situation as a major failure of the government’s bureaucratic system.
“The exposure of that fake presidential agency is a major lapse to say that somebody can actually come into the system, get in on the budget, get offices, and all of that,” he said.
The former permanent secretary identified weaknesses in the bureaucratic structures supporting key offices in the Presidency, including the Office of the Secretary to the Government of the Federation, the Office of the Chief of Staff to the President and the Office of the Head of the Civil Service.
According to him, the bureaucracy in these offices should be strong enough to support the President’s policies while also ensuring that fraudulent or unlawful directives do not gain effect.
“The bureaucracy in those offices are not strong enough to be able to help the President drive the vision at the speed and with the efficiency that he wants,” Adeboroye said.
He also stressed the importance of having professional and experienced civil servants who can scrutinise directives issued by political office holders.
Adeboroye said civil servants should be able to recognise suspicious communications purportedly coming from the Presidency because they are familiar with the official channels through which presidential approvals are transmitted.
“Whether the person brings fake or whatever, you as the civil servant should be trained to be able to detect what should be a genuine communication from the State House. You work in that system,” he said.
He explained that presidential approvals usually pass through established channels involving senior government officials.
“When the President approves anything, he always minutes to about three people. He goes to the Chief of Staff, he goes to SGF, and if he has something to do with civil service, the Head of Service will have it.”
Adeboroye recalled an incident from his time as Permanent Secretary in the Ministry of Interior involving a former governor who claimed to have presidential approval for a diplomatic passport.
He said the then Comptroller-General of the Nigeria Immigration Service, Ude, cross-checked the purported approval before taking action and subsequently sought clarification on whether the former governor, who was no longer in office, should receive the diplomatic passport.
“That’s somebody using the experience of the system to ensure that you are not outplayed,” he said.
The former permanent secretary said similar verification could have been carried out in the alleged fake agency case through a simple phone call to the relevant government offices.
“So we would have expected that on a simple phone call, when I was working in the office of Ekaite, Secretary of Government, I could pick a phone, call any minister, call this, it’s just a phone call from the office of whoever to say, Chief of Staff, is this true? And that would have actually corrected it,” he said.
Meanwhile, the controversy surrounding the National Brands Development and Made in Nigeria Special Project Office has continued.
The chairman of the project office, Musa Aliyu, had alleged that the office was allocated space within the OSGF premises without presidential authorisation.
However, the National Coordinator and Executive Director of the project office, George Nwabueze, denied the allegation, insisting that the office is a project office under the OSGF and has existed for 16 years.
Nwabueze also produced an appointment letter purportedly issued by the OSGF, conveying approval of his appointment as National Coordinator/Executive Director of the Made in Nigeria Project Office.
The conflicting claims have continued to raise questions about the authorisation and status of the project office and the alleged involvement of public officials in its operations.
The Labour Party has commended former President Goodluck Jonathan for conceding defeat in the 2015 presidential election, saying his decision demonstrated that political power was not worth the blood of Nigerians.
The National Chairman of the Labour Party, Senator Nenadi Usman, made the statement on Tuesday in Bauchi State while speaking with journalists on the sidelines of the 2026 Goodluck Jonathan Foundation Democracy Dialogue.
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The event, organised by the Goodluck Jonathan Foundation, was themed, “Beyond Elections: Can Political Parties and the Judiciary Save African Democracy?”
Usman said Nigeria’s democracy survived the tensions surrounding the 2015 election because Jonathan chose to put the national interest above his desire to remain in office.
She said, “Nigeria’s democracy survived the doomsday predictions of bookmakers in 2015 because of President Jonathan’s concession of defeat in that year’s election, even before the final votes were tallied.”
According to her, Jonathan’s approach to politics was exceptional, particularly because he had consistently maintained that neither his election nor remaining in power was worth the blood of any Nigerian.
Usman stated, “Such a principled approach to politics had never before been witnessed on the Nigerian political horizon. Jonathan, from the inception of his presidency, consistently maintained that neither his election nor remaining in power was worth the blood of any Nigerian.”
She added that Jonathan demonstrated the sincerity of his position when the 2015 election tested his commitment to the principle.
The Labour Party chairman urged politicians preparing for the 2027 general elections to emulate Jonathan’s non-violent approach to politics, respect democratic rules and place national interest above personal ambitions.
She also questioned whether politicians seeking the presidency in 2027 would be prepared to make similar sacrifices for national unity, particularly amid inflammatory rhetoric from some political camps.
Usman further recalled the saying attributed to Warren Buffett that someone is sitting in the shade today because someone planted a tree a long time ago.
She argued that Nigerians are able to practise democracy today partly because Jonathan made sacrifices at a critical moment.
On the Labour Party’s preparations for the 2027 elections, Usman described the party as the most structured opposition political party in Nigeria.
She said the Labour Party’s relationship with the Nigeria Labour Congress and the Trade Union Congress had strengthened its political structure nationwide.
Usman claimed that the party remained the only opposition party with a realistic presence across Nigeria’s 186,000 polling units.
She said, “With the combined strength of the NLC and the TUC, both of which are constitutional members of the party, no Nigerian political party is better positioned to show the APC government the exit door than the Labour Party.”
The democracy dialogue attracted several political leaders and dignitaries, including former Presidents Olusegun Obasanjo and Goodluck Jonathan, former Vice-President Namadi Sambo, Bauchi State Governor Bala Mohammed, former Senate President Anyim Pius Anyim and Labour Party’s 2023 presidential candidate, Peter Obi.
Others included former Plateau State Governor Jonah Jang, APC Deputy National Chairman, South, Dr Ben Nwoye, and the Emir of Bauchi, Dr Rilwanu Suleiman Adamu.
The dialogue provided a platform for discussions on strengthening democratic institutions, the role of political parties and the judiciary, and preventing democratic reversals across Africa.
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